Critical Contrast: SES (SGBAF) versus Its Rivals

SES (OTCMKTS:SGBAF) is one of 203 public companies in the “Diversified Telecommunication Services” industry, but how does it compare to its peers? We will compare SES to similar companies based on the strength of its institutional ownership, risk, dividends, analyst recommendations, valuation, profitability and earnings.

Profitability

This table compares SES and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SES	-8.96%	-9.43%	-1.93%
SES Competitors	-28.86%	-81.28%	-1.85%

Valuation & Earnings

This table compares SES and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
SES	$2.97 billion	-$107.48 million	-7.06
SES Competitors	$1,845.19 billion	$974.92 million	-188.84

SES’s peers have higher revenue and earnings than SES. SES is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

32.7% of shares of all “Diversified Telecommunication Services” companies are held by institutional investors. 18.7% of shares of all “Diversified Telecommunication Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for SES and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SES	2	1	0	0	1.33
SES Competitors	1666	5113	7348	366	2.44

As a group, “Diversified Telecommunication Services” companies have a potential upside of 27.03%. Given SES’s peers stronger consensus rating and higher probable upside, analysts plainly believe SES has less favorable growth aspects than its peers.

Volatility & Risk

SES has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, SES’s peers have a beta of -4.78, meaning that their average share price is 578% less volatile than the S&P 500.

Summary

SES peers beat SES on 9 of the 13 factors compared.

About SES

SES S.A. provides satellite-based data transmission capacity and ancillary services worldwide. The company offers content connectivity solutions, including network spanning satellite and ground infrastructure to create, deliver, and manage video and data solutions. It also provides data connectivity services through its fleet of geostationary earth orbit and medium earth orbit satellites to the aviation, cloud, cruise, energy, government, maritime, and telco and mobile network operator industries. In addition, the company offers video services, which includes end-to-end managed services to audience; and provides multi-screen and multi-device viewing experiences on linear channels, video-on-demand, streaming platforms, and social media sites for broadcasters, platform operators, and sports organizations. Further, it provides linear video aggregation and distribution, such as direct-to-home, direct-to-cable, and internet protocol TV households; channel management solutions comprising playout; and live feeds and redundancy features. The company was formerly known as SES Global SA and changed its name to SES S.A. in December 2006. SES S.A. was founded in 1985 and is headquartered in Betzdorf, Luxembourg.